Measures of Inequality Within Countries
Geography: Cambridge International GCSE (2027 Exams), topic 8.2.3
Causes and Measures of Inequality Within Countries
Inequality between regions within a country is often because of cumulative causation. Inequality within a country can be measured using the Gini Coefficient.
Regional disparity
- Regional disparities are differences in living conditions between different areas in a country or between countries.
- One theory of why regional disparity exists is something called cumulative causation.
- Cumulative causation describes a positive multiplier effect or snowball effect where something gets larger and larger over time.
Cumulative causation example
- Introducing one new industry to an area creates a new firm.
- This new firm will then buy raw materials from another firm nearby, causing growth in the supplier’s business, providing jobs.
- Shops, schools and hospitals will be needed for new employees, which gives construction workers jobs too.
- People will earn more so the government will get more from income tax, which can go into infrastructure and public services.
- The place will attract more people as it becomes a better place to live.
- The place can now be called a 'growth pole'.
Core and periphery locations
- Core locations develop faster than other areas because they have some human or geographical advantage over other areas.
- Periphery locations are less likely to develop so fast because they lack these human or geographic advantages.
Test yourself on Measures of Inequality Within Countries
Cumulative Causation Example
What does the Gini Coefficient measure?